ScoreWhy is Northrop Grumman Corp. ?
1
High Management Efficiency with a high ROCE of 14.47%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.30
3
The company declared negative results in Mar'25 after very positive results in Dec'24
- OPERATING CASH FLOW(Y) Lowest at USD 2,972 MM
- INVENTORY TURNOVER RATIO(HY) Lowest at 21.38 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.49 times
4
With ROCE of 13.79%, it has a fair valuation with a 2.98 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.75%, its profits have risen by 72% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Northrop Grumman Corp. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Northrop Grumman Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Northrop Grumman Corp.
5.43%
1.05
27.21%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.66%
EBIT Growth (5y)
1.04%
EBIT to Interest (avg)
6.30
Debt to EBITDA (avg)
2.44
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
1.31
Tax Ratio
16.85%
Dividend Payout Ratio
30.91%
Pledged Shares
0
Institutional Holding
84.70%
ROCE (avg)
14.47%
ROE (avg)
31.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
5.78
EV to EBIT
25.23
EV to EBITDA
18.77
EV to Capital Employed
3.82
EV to Sales
2.57
PEG Ratio
10.10
Dividend Yield
1.45%
ROCE (Latest)
15.12%
ROE (Latest)
25.08%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 4,666 MM
ROCE(HY)
Highest at 28.51%
DEBT-EQUITY RATIO
(HY)
Lowest at 87.55 %
DIVIDEND PER SHARE(HY)
Highest at USD 4.43
RAW MATERIAL COST(Y)
Fallen by -20.08% (YoY
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Northrop Grumman Corp.
Debt-Equity Ratio
Lowest at 87.55 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 4.43 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 4,666 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Raw Material Cost
Fallen by -20.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
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